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South African Tribunal Approves Iscor-LNM Merger
06/18/2004 - Iscor said it was delighted by the South African Competition Tribunal’s recent decision to approve the merger between the company and London-based LNM Group, the world's second-largest steel producer.
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Iscor says that the merger with LNM holds extensive benefits for Iscor and South Africa. Iscor's corporate affairs executive Phaldie Kalam said that LNM's involvement with Iscor has been extremely valuable in respect of the business, technical, marketing and purchasing support provided by LNM to Iscor in terms of a business assistance agreement between the two companies. To date, this has amounted to an annual sustainable saving of R388 million for Iscor. "As a commodity business, where one's competitive advantage is often based simply on the quality of the product offering and the company's efficiencies, it is essential that Iscor become part of global steel advancements and does not fall behind in its endeavors to be competitive." "The merger with LNM is precisely designed to keep the South African steel producer at the cutting edge of the steel industry," said Kalam. |
Iscor said it was delighted by the South African Competition Tribunal’s recent decision to approve the merger between the company and London-based LNM Group, the world's second-largest steel producer.
Iscor spokesperson Phaldie Kalam called the decision "one that was made in the interest of the country and which will benefit both companies going forward".
Kalam said the approval by the Competition Tribunal now creates a new transnational steel producer in South Africa, but that the South African steel market remains competitive notwithstanding the presence of a dominant player. "Steel therefore transacts in a generally free market in this country and has minimal barriers to entry, other than a small import tariff, which is among the lowest in the world. Secondary steel manufacturers can therefore freely source steel from anywhere in the world if they can find it cheaper," said Kalam.
"It is our endeavor going forward, that we will ensure the continued application of free market principles — as has been the case in the past — in all our business dealings with the market," he said.
